diff --git a/ICRCs/ICRC-123/ICRC-123.md b/ICRCs/ICRC-123/ICRC-123.md
new file mode 100644
index 00000000..0b129204
--- /dev/null
+++ b/ICRCs/ICRC-123/ICRC-123.md
@@ -0,0 +1,286 @@
+# ICRC-123: Freeze and Unfreeze Blocks
+
+## Status
+
+Draft
+
+## Introduction
+
+This standard defines new block types for ICRC-compliant ledgers that enable freezing and unfreezing of accounts and principals. These operations are primarily relevant in regulatory contexts or under specific legal or platform policy obligations where temporarily restricting interactions with certain accounts or identities is necessary. Freezing an account or principal must be reflected transparently on-chain, using a format designed for auditability and clear semantics.
+
+## Motivation
+
+Regulatory requirements or platform policies may necessitate the ability to freeze accounts or principals. This standard provides explicit block types (`123freezeaccount`, `123unfreezeaccount`, `123freezeprincipal`, `123unfreezeprincipal`) to record these actions transparently on the ledger, distinct from standard transactional blocks. It defines a block structure with a minimal `tx` sufficient to determine semantics; additional provenance MAY be included to enhance auditability.
+
+## Common Elements
+
+This standard follows the conventions set by ICRC-3, inheriting key structural components.
+
+- **Accounts** are represented using the ICRC-3 `Value` type, specifically as a `variant { Array = vec { V1 [, V2] } }` where `V1` is `variant { Blob = <owner_principal> }` representing the account owner, and `V2` is `variant { Blob = <subaccount> }` representing the subaccount. If no subaccount is specified, the `Array` MUST contain only one element (`V1`). If present, the subaccount **MUST** be exactly 32 bytes.
+- **Principals** are represented as `variant { Blob = <principal_bytes> }`.
+- **Timestamps:** `ts` (and any optional `created_at_time` if included) are **nanoseconds since the Unix epoch**, encoded as `Nat` but **MUST fit into `nat64`**.
+- **Parent hash:** `phash : Blob` **MUST** be present if the block has a parent (omit for the genesis block).
+
+## Block Types & Schema
+
+Each block introduced by this standard MUST include a `tx` field containing a map. This map encodes the **minimal information** about the freeze/unfreeze operation sufficient to determine its semantic effect. Additional provenance (e.g., `caller`, `reason`, `created_at_time`) MAY be included but is not required for semantics.
+
+Each block consists of the following top-level fields:
+
+| Field | Type (ICRC-3 `Value`) | Required | Description |
+|------|-------------------------|----------|-------------|
+| `btype` | `Text` | Yes | MUST be one of: `"123freezeaccount"`, `"123unfreezeaccount"`, `"123freezeprincipal"`, `"123unfreezeprincipal"`. |
+| `ts` | `Nat` | Yes | Timestamp (ns since Unix epoch) when the block was added to the ledger. MUST fit in `nat64`. |
+| `phash` | `Blob` | Yes/No | Hash of the parent block; omitted only for the genesis block. |
+| `tx` | `Map(Text, Value)` | Yes | Minimal operation details (see below). |
+
+### `tx` Field Schemas (minimal)
+
+#### `123freezeaccount`
+
+| Field   | Type (ICRC-3 `Value`)                               | Req | Description            |
+|---------|------------------------------------------------------|-----|------------------------|
+| `account` | `variant { Array = vec { V1 [, V2] } }`¹          | Yes | The account being frozen. |
+
+#### `123unfreezeaccount`
+
+| Field   | Type (ICRC-3 `Value`)                               | Req | Description              |
+|---------|------------------------------------------------------|-----|--------------------------|
+| `account` | `variant { Array = vec { V1 [, V2] } }`¹          | Yes | The account being unfrozen. |
+
+#### `123freezeprincipal`
+
+| Field      | Type (ICRC-3 `Value`)                 | Req | Description             |
+|------------|----------------------------------------|-----|-------------------------|
+| `principal` | `variant { Blob = <principal_bytes> }` | Yes | The principal being frozen. |
+
+#### `123unfreezeprincipal`
+
+| Field      | Type (ICRC-3 `Value`)                 | Req | Description               |
+|------------|----------------------------------------|-----|---------------------------|
+| `principal` | `variant { Blob = <principal_bytes> }` | Yes | The principal being unfrozen. |
+
+¹ `V1 = variant { Blob = <owner_principal> }`; optional `V2 = variant { Blob = <subaccount32> }` (exactly 32 bytes).
+
+### Optional Provenance (non-semantic)
+
+Producers MAY include non-semantic provenance fields within `tx`, such as:
+
+- `caller : Blob` — principal that initiated the action (when applicable).
+- `reason : Text` — human-readable context for the action.
+- `created_at_time : Nat` — caller-supplied timestamp in nanoseconds (MUST fit in `nat64`).
+- `policy_ref : Text` — identifier for the policy/order/proposal under which the action occurred.
+- `op : Text` — the logical operation or method that produced the block. This field is **optional** in ICRC-123, but when a separate standard defines methods that create ICRC-123 blocks, that standard **SHOULD** include `tx.op` to make the call uniquely identifiable from `tx`.
+
+  **Namespacing rule (from ICRC-3):** `tx.op` values SHOULD be namespaced by the standard that defines the method to avoid collisions. Use a numeric ICRC prefix and a lowercase op name:
+
+  - Format: `<icrc_number><op_name>`
+  - Examples: `147freeze_principal`, `147unfreeze_account`
+
+  **Alternative (descriptive) form:** Implementations MAY also include a fully-qualified method name for readability, e.g. `icrc147_freeze_principal`. The numeric-namespaced form above is preferred for compactness and collision-avoidance.  
+
+  `tx.op` is **provenance only**; it MUST NOT affect block semantics or verification.
+
+
+
+
+> **Informative note (recoverability):** Implementations **SHOULD** provide mechanisms (e.g., archives or lookups) to retrieve extended invocation context not present in `tx` when useful for audits. The authorization model that permits these actions is implementation-defined.
+
+
+### Guidance for Standards That Define Methods
+
+A standard that defines ledger methods which produce ICRC-123 blocks (e.g., “freeze principal” or “unfreeze account”) SHOULD:
+
+1. **Include `tx.op`** in the resulting block’s `tx` map.  
+   - Use a namespaced value per ICRC-3: `<icrc_number><op_name>` (e.g., `147freeze_principal`).  
+   - This makes the call uniquely identifiable and prevents collisions across standards.
+
+2. **Define a canonical mapping** from the method’s call parameters to the block’s minimal `tx` fields:  
+   - `123freezeaccount` / `123unfreezeaccount`: map the account argument to `tx.account`.  
+   - `123freezeprincipal` / `123unfreezeprincipal`: map the principal argument to `tx.principal`.  
+   - Do **not** add extra semantic fields; provenance such as `caller`, `reason`, `created_at_time`, `policy_ref` MAY be included but MUST NOT affect semantics.
+
+3. **Document deduplication inputs** (if any). If the method uses a caller-supplied timestamp, put it in `tx.created_at_time` (ns; MUST fit `nat64`).
+
+
+
+## Semantics
+
+### Account Status
+
+Given the state of the ledger at a particular block height `h`, an account `acc = (owner: Principal, subaccount: opt Blob)` is considered **RESTRICTED** iff the most recent freeze/unfreeze block at or before `h` that affects `acc` is a freeze block (`123freezeaccount` or `123freezeprincipal`).
+
+A block affects `acc` if it satisfies one of the following:
+- It is a `123freezeaccount` or `123unfreezeaccount` block where `tx.account` matches `acc`.
+- It is a `123freezeprincipal` or `123unfreezeprincipal` block where `tx.principal` equals `owner` of `acc`.
+
+If the most recent affecting block is an unfreeze block (`123unfreezeaccount` or `123unfreezeprincipal`), or if none exist, the account is **NON-RESTRICTED**.
+
+Implications:
+- An account freeze can be lifted by a later unfreeze of the **same account** or a later unfreeze of the **owning principal**.
+- A principal freeze applies to all accounts owned by that principal until lifted, unless a more recent specific `123freezeaccount` targets an account after the principal is unfrozen.
+
+### Ledger Enforcement Rules
+
+- **Transfers:**  
+  - MUST reject any `icrc1_transfer` / `icrc2_transfer_from` where the **sender** (`from`) is RESTRICTED.  
+  - MAY reject or allow incoming transfers to a RESTRICTED **recipient** (`to`) per ledger policy.
+- **ICRC-2 Operations:**  
+  - `icrc2_approve` (granting approval): a RESTRICTED account MUST NOT grant approvals.  
+  - `icrc2_approve` (receiving approval): policy-defined; even if granted, a RESTRICTED spender MUST NOT use it while restricted.  
+  - `icrc2_transfer_from` (acting as spender): a RESTRICTED account MUST NOT act as spender.
+- Freeze/unfreeze blocks do not retroactively modify prior transactions; they apply to transactions attempted **at or after** their block height.
+- Freeze/unfreeze blocks MUST be permanently recorded and included in the hash chain.
+
+### Idempotency and Redundancy
+
+- A ledger MAY reject freeze or unfreeze blocks that would have **no effect** on the current RESTRICTED status of the target account or principal (e.g., freezing an already frozen account via the same mechanism), or MAY choose to **record them anyway** for auditability.
+- Clients interpreting freeze status MUST follow the **"latest-action-wins" rule** as defined in "Account Status": the most recent freeze or unfreeze block affecting an account or principal determines its effective status.
+
+### Querying Freeze Status
+
+Ledgers implementing this standard SHOULD expose a query (e.g., `is_account_restricted(account): bool`) that returns whether an account is currently RESTRICTED per the rules above. This is a convenience and does not replace auditing from history.
+
+## Compliance Reporting
+
+Ledgers implementing this standard MUST report supported block types via `icrc3_supported_block_types`:
+
+```candid
+vec {
+  variant { Record = vec {
+    record { "btype"; variant { Text = "123freezeaccount" }};
+    record { "url"; variant { Text = "https://github.com/dfinity/ICRC/blob/main/ICRCs/ICRC-123.md" }};
+  }};
+  variant { Record = vec {
+    record { "btype"; variant { Text = "123unfreezeaccount" }};
+    record { "url"; variant { Text = "https://github.com/dfinity/ICRC/blob/main/ICRCs/ICRC-123.md" }};
+  }};
+  variant { Record = vec {
+    record { "btype"; variant { Text = "123freezeprincipal" }};
+    record { "url"; variant { Text = "https://github.com/dfinity/ICRC/blob/main/ICRCs/ICRC-123.md" }};
+  }};
+  variant { Record = vec {
+    record { "btype"; variant { Text = "123unfreezeprincipal" }};
+    record { "url"; variant { Text = "https://github.com/dfinity/ICRC/blob/main/ICRCs/ICRC-123.md" }};
+  }};
+}
+```
+
+
+## Example Blocks
+
+
+
+
+### 123freezeaccount Example
+
+```
+variant { Map = vec {
+  record { "btype"; variant { Text = "123freezeaccount" }};
+  record { "ts"; variant { Nat = 1_747_773_480_000_000_000 : nat }}; // Example: 2025-05-19T12:38:00Z
+  record { "phash"; variant { Blob = blob "\d5\c7\eb\57\a2\4e\fa\d4\8b\d1\cc\54\9e\49\c6\9f\d1\93\8d\e8" }}; // Example parent hash
+  record { "tx"; variant { Map = vec {
+    // Optional provenance: the principal that invoked the operation
+    record { "caller"; variant { Blob = blob "\00\00\00\00\00\00\f0\0d\01\01" }}; // Example caller principal (e.g., a compliance officer canister)
+    // The account being frozen (owner + subaccount)
+    record { "account"; variant { Array = vec {
+      variant { Blob = blob "\00\00\00\00\02\00\01\0d\01\01" }; // Example owner principal of the account
+      variant { Blob = blob "\06\ec\cd\3a\97\fb\a8\5f\bc\8d\a3\3e\5d\ba\bc\2f\38\69\60\5d\c7\a1\c9\53\1f\70\a3\66\c5\a7\e4\21" }; // Example subaccount
+    }}};
+    // Optional reason
+    record { "reason"; variant { Text = "Regulatory compliance order #REG-1138" }};
+  }}};
+}};
+```
+
+
+
+### 123unfreezeaccount Example
+
+```
+variant { Map = vec {
+  record { "btype"; variant { Text = "123unfreezeaccount" }};
+  record { "ts"; variant { Nat = 1_747_773_540_000_000_000 : nat }}; // Example: 2025-05-19T12:39:00Z
+  record { "phash"; variant { Blob = blob "\e8\a1\03\ff\00\11\22\33\44\55\66\77\88\99\aa\bb\cc\dd\ee\ff" }}; // Example parent hash
+  record { "tx"; variant { Map = vec {
+    // Optional provenance: the principal that invoked the operation
+    record { "caller"; variant { Blob = blob "\00\00\00\00\00\00\f0\0d\01\01" }}; // Example caller principal
+    // The account being unfrozen
+    record { "account"; variant { Array = vec {
+      variant { Blob = blob "\00\00\00\00\02\00\01\0d\01\01" };
+      variant { Blob = blob "\06\ec\cd\3a\97\fb\a8\5f\bc\8d\a3\3e\5d\ba\bc\2f\38\69\60\5d\c7\a1\c9\53\1f\70\a3\66\c5\a7\e4\21" };
+    }}};
+    // Optional reason
+    record { "reason"; variant { Text = "Compliance review complete. Order #REG-1138 lifted." }};
+  }}};
+}};
+
+```
+
+
+### 123freezeprincipal Example
+```
+variant { Map = vec {
+  record { "btype"; variant { Text = "123freezeprincipal" }};
+  record { "ts"; variant { Nat = 1_747_773_600_000_000_000 : nat }}; // Example: 2025-05-19T12:40:00Z
+  record { "phash"; variant { Blob = blob "\f0\1d\9b\2a\10\20\30\40\50\60\70\80\90\a0\b0\c0\d0\e0\f0\00" }}; // Example parent hash
+  record { "tx"; variant { Map = vec {
+    // Optional provenance: the principal that invoked the operation
+    record { "caller"; variant { Blob = blob "\00\00\00\00\00\00\f0\0d\01\02" }}; // Example caller (e.g., DAO canister)
+    // The principal being frozen
+    record { "principal"; variant { Blob = blob "\94\85\a4\06\ef\cd\ab\01\23\45\67\89\12\34\56\78\90\ab\cd\ef" }}; // Example principal to freeze
+    // Optional reason
+    record { "reason"; variant { Text = "Platform terms of service violation." }};
+  }}};
+}};
+
+```
+
+### 123unfreezeprincipal Example
+```
+variant { Map = vec {
+  record { "btype"; variant { Text = "123unfreezeprincipal" }};
+  record { "ts"; variant { Nat = 1_747_773_660_000_000_000 : nat }}; // Example: 2025-05-19T12:41:00Z
+  record { "phash"; variant { Blob = blob "\c3\45\e6\b9\fe\dc\ba\98\76\54\32\10\00\00\00\00\00\00\00\00" }}; // Example parent hash
+  record { "tx"; variant { Map = vec {
+    // Optional provenance: the principal that invoked the operation
+    record { "caller"; variant { Blob = blob "\00\00\00\00\00\00\f0\0d\01\02" }}; // Example caller
+    // The principal being unfrozen
+    record { "principal"; variant { Blob = blob "\94\85\a4\06\ef\cd\ab\01\23\45\67\89\12\34\56\78\90\ab\cd\ef" }};
+    // Optional reason (example of omission for brevity, or if not applicable)
+    // record { "reason"; variant { Text = "Appeal successful." }};
+  }}};
+}};
+
+```
+
+### Informative Example: Integration with a Standardized Method
+
+ICRC-123 defines only block types and their semantics. It does not define any ledger methods.
+However, future standards may specify methods that map directly to these block types.
+For illustration, suppose a future standard (e.g., ICRC-147) introduces the method:
+
+```
+icrc147_freeze_principal : (principal, opt text) -> result nat
+```
+
+Invoking this method with a target principal and an optional reason could produce a
+`123freezeprincipal` block on-chain. A possible encoding is shown below:
+
+```
+variant { Map = vec {
+  record { "btype"; variant { Text = "123freezeprincipal" }};
+  record { "ts"; variant { Nat = 1_747_800_000_000_000_000 : nat }};
+  record { "phash"; variant { Blob = blob "\aa\bb\cc\dd\ee\ff\00\11\22\33\44\55\66\77\88\99" }};
+  record { "tx"; variant { Map = vec {
+    // Namespaced op from the method-defining standard (ICRC-147)
+    record { "op"; variant { Text = "147freeze_principal" }};
+    // Optional provenance (non-semantic)
+    record { "caller"; variant { Blob = blob "\00\00\00\00\00\00\f0\0d\01\02" }};
+    record { "principal"; variant { Blob = blob "\94\85\a4\06\ef\cd\ab\01\23\45\67\89\12\34\56\78\90\ab\cd\ef" }};
+    record { "reason"; variant { Text = "Sanctions order #147-2025" }};
+  }}};
+}}
+
+```
+This example is non-normative and illustrates how a standardized method can map into the ICRC-123 block structure while using a namespaced `tx.op` for unambiguous identification. The authoritative semantics remain defined by the ICRC-123 block types.
\ No newline at end of file